Investing in gold stocks that pay dividends can be rewarding in many ways. Not only do they provide a natural hedge against economic uncertainties, they offer the capital appreciation that you would have got on physical gold.
These stocks provide the diversification that an investor needs while facing inflation and volatility woes. At the time of rising Gold Prices, the dividends are an additional and steady income stream.
Doing away with the hazards of storing physical gold, gold stocks are otherwise a natural fit. Coming with easier liquidity, if carefully selected, these are generally considered a low risk investment, especially for medium and long term investors.
Why buy ASX dividend paying Gold stocks now has distinct answers. In the current economic scenario of rising inflation, gold has continued to rise, reaching record levels, with no signs of ebbing in the near future. With a track record of long-term asset appreciation, it is a valuable addition to the investment portfolio
ASX Gold Stocks have responded well, with overall Gold Mining sector in Australia performing well. With rising gold prices, these mining companies are likely to be performing well.
Northern Star Resources Limited (ASX: NST)
Northern Star Resources Limited's consistent operational deliveries, combined with record cash generation, demonstrate the company's efficiency and scale. This has enabled the management to continue to focus on providing superior shareholder returns, rewarding shareholders with a record dividend and an ongoing A$300 million share buyback program.
Company's record cash earnings and reaching the halfway point of a low-risk, five-year profitable growth strategy, demonstrates its cash-generating potential.
Red Hill Minerals Limited (ASX: RHI)
Red Hill Minerals Limited (ASX: RHI) had recently announced the receipt of positive results from exploration undertaken at the Barkley Prospect within Red Hill Minerals West Pilbara Gold and Base Metal Project.
Red Hill witnessed a significant boost of approximately 26% in its exploration/mining assets in 2023 as the company continues to advance with its explorations. The book value and enterprise value however increased exceptionally owing to the sale of the company’s interest in the RHIOJV, yielding initial cash inflows of $200 million, which also resulted in a huge dividend payment of $1.20 to the shareholders.
Perseus Mining Limited (ASX: PRU)
Perseus Mining Limited sustains a robust and consistently expanding production profile, yielding improved monetary returns and notable financial growth year on year.
The company demonstrates high efficiency in terms of profitability and margin improvement, characterised by a low AISC.
The extraordinary cash position of US$581 million provides a robust and highly liquid foundation, enabling the company to fund investments and specifically target the acquisition of OreCorp. This acquisition has the potential to deliver a substantial medium-term production boost for the company.
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